I tried attaching a document that provides some background on the team's finances and explains the reasons for the filing but it was too big. The team will use chapter 11 to obtain new financing (on a super-priority basis) and will be auctioning off the cable television rights, presumably with Fox as the stalking-horse bidder. This one could get messy.

jaguiar2

06-27-2011, 10:46 AM

The White Sox are listed as a creditor, owed $3.5 million. I assume this is for Juan Pierre still.

The Immigrant

06-27-2011, 10:54 AM

The White Sox are listed as a creditor, owed $3.5 million. I assume this is for Juan Pierre still.

That's probably for Manny. Pierre is listed as being owed more than $3 million by the Dodgers.

EDIT - I think you're right, it's for Pierre. It's hard to believe, but he's owed close to $9 million for this season. That must be the Dodgers' share of the pain.

Milw

06-27-2011, 11:20 AM

The Dodgers have filed bankruptcy, and apparently the Sox are the 5th largest creditors, being owed $3.5 million for Juan Pierre. (Manny Ramirez is the team's biggest creditor, which is both absurd and hilarious.)

Anyway, does anybody here know bankruptcy law well enough to say if this will have any bearing on the Sox' ability to collect on that money? Could there even be some loophole that lets the Sox cut Pierre without having to pay him? :praying:

voodoochile

06-27-2011, 11:29 AM

The Dodgers have filed bankruptcy, and apparently the Sox are the 5th largest creditors, being owed $3.5 million for Juan Pierre. (Manny Ramirez is the team's biggest creditor, which is both absurd and hilarious.)

Anyway, does anybody here know bankruptcy law well enough to say if this will have any bearing on the Sox' ability to collect on that money? Could there even be some loophole that lets the Sox cut Pierre without having to pay him? :praying:

LOL no this is merely a ploy because they can't meet payroll this month and it saves them from having to pay. Bud will force them to sell and life will go on. MLB will probably pick up the tab for the monthly payroll until things get settled.

dickallen15

06-27-2011, 11:39 AM

I think this is McCourt's best shot at getting the Fox deal approved and remaining in control of the team. MLB is going to have to explain why it shouldn't.

StillMissOzzie

06-27-2011, 02:45 PM

That's probably for Manny. Pierre is listed as being owed more than $3 million by the Dodgers.

EDIT - I think you're right, it's for Pierre. It's hard to believe, but he's owed close to $9 million for this season. That must be the Dodgers' share of the pain.

The Dodgers have filed bankruptcy, and apparently the Sox are the 5th largest creditors, being owed $3.5 million for Juan Pierre. (Manny Ramirez is the team's biggest creditor, which is both absurd and hilarious.)

Anyway, does anybody here know bankruptcy law well enough to say if this will have any bearing on the Sox' ability to collect on that money? Could there even be some loophole that lets the Sox cut Pierre without having to pay him? :praying:

According to Cot's Baseball Contracts, it is confirmed that the $3.5M the Dodgers owe the Sox is for the 2011 season. Man, was that a bad contract they gave JP!

SMO
:o:

AZChiSoxFan

06-27-2011, 03:17 PM

I think this is McCourt's best shot at getting the Fox deal approved and remaining in control of the team. MLB is going to have to explain why it shouldn't.

Ummm......I believe the reason it shouldn't be approved is because MLB is tired of McCourt using dodgers funds to pay for his overly lavish lifestyle, for his sons to be on the Dodgers payroll while having absolutely nothing to do with the team, and paying his lawyers tens of millions of dollars for his divorce. All the while, the once model franchise of MLB goes down the toilet.

But yah, I guess you're right, they should just go ahead and approve the deal.

Zakath

06-27-2011, 07:33 PM

Ummm......I believe the reason it shouldn't be approved is because MLB is tired of McCourt using dodgers funds to pay for his overly lavish lifestyle, for his sons to be on the Dodgers payroll while having absolutely nothing to do with the team, and paying his lawyers tens of millions of dollars for his divorce. All the while, the once model franchise of MLB goes down the toilet.

This appears to just delay MLB's eventual seizure of the Dodgers. They can't continue to have one of the premier franchises of the NL held hostage to Arnie Becker et al.

DumpJerry

06-27-2011, 07:41 PM

To alleviate their financial stress, we should send Pierre back to them.

The Immigrant

06-28-2011, 12:09 PM

Anyway, does anybody here know bankruptcy law well enough to say if this will have any bearing on the Sox' ability to collect on that money?

In the absence of a complete meltdown that results in MLB terminating its operating agreements with the Dodgers - which is a highly unlikely scenario - all unsecured creditors should receive a full recovery on their claims. The assets of the club greatly exceed its liabilities.

The Immigrant

06-28-2011, 12:13 PM

MLB has filed an objection to LAD's request for approval of a new financing facility with an affiliate of JP Morgan. MLB has offered to provide a loan on materially better terms for LAD, including a lower interest rate and no upfront fees, and argues that approval of the loan from JP Morgan could result in an uncurable default under the operating agreements between LAD and MLB. MLB has also indicated that it will move for dismissal of the bankruptcy case or will seek to have a trustee appointed to oversee the club's operations.

The first hearing before Judge Gross (who is the mediator in the Tribune's bankruptcy case) is scheduled for this afternoon.

Sox

06-28-2011, 12:23 PM

To alleviate their financial stress, we should send Pierre back to them.

Here, here!!!!! :clap:

The Immigrant

06-28-2011, 06:17 PM

The judge has approved the proposed loan from J.P. Morgan over the Commissioner's objections. The Dodgers can borrow up to $60 million to meet their operating expenses.

vinny

06-28-2011, 09:48 PM

The judge has approved the proposed loan from J.P. Morgan over the Commissioner's objections. The Dodgers can borrow up to $60 million to meet their operating expenses.

MLB was the clear winner today. They got the broadcast rights auction requirement taken out of the loan agreement and reduced the termination fee to Highbridge Capital by $4.25 million. Plus, MLB's loan offer will be back under consideration by the judge in 30 days. McCourt is just delaying the inevitable.

soxfanreggie

06-29-2011, 12:59 AM

To alleviate their financial stress, we should send Pierre back to them.

I'm sure there are a few players we can take off their books for the rest of the year, but a lot of their players come off the books after the season. I could easily see them running with a payroll under $75 million next year, potentially even lower.

The Immigrant

06-29-2011, 10:21 AM

MLB was the clear winner today. They got the broadcast rights auction requirement taken out of the loan agreement and reduced the termination fee to Highbridge Capital by $4.25 million. Plus, MLB's loan offer will be back under consideration by the judge in 30 days. McCourt is just delaying the inevitable.

I agree that he's just delaying the inevitable, but there was no clear winner yesterday. They basically agreed to postpone the fight until the July 20th hearing. If the Highbridge loan is approved on a final basis, the closing fee will go back to $4.25 million and McCourt will be free to pursue the broadcast rights auction.

doublem23

06-30-2011, 11:04 PM

Dodgers bouncing checks

http://sports.espn.go.com/los-angeles/mlb/news/story?id=6725971

soxfanreggie

07-01-2011, 01:00 AM

Dodgers bouncing checks

http://sports.espn.go.com/los-angeles/mlb/news/story?id=6725971

Yes, but it looks like because of the bankruptcy filing and they have been paid.

The Immigrant

07-01-2011, 12:27 PM

Yes, but it looks like because of the bankruptcy filing and they have been paid.

Unless you have everyone on direct deposit or pre-fund the payroll through a third party, this type of thing happens in most chapter 11 filings. Once the banks receive notice of the filing they automatically freeze all accounts until the bankruptcy judge enters the first batch of orders some 48 hours later, and then are notoriously slow to unfreeze the accounts once the orders have been entered. Any checks presented in the interim will be bounced even if there are sufficient funds in the debtor's payroll account.